Coca Cola in India

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Subject: Corporate Social Responsibility Initiatives in India

1. Company Background • Coke – A sweet carbonated drink containing caramel and other flavoring components • Invented in 1886 by Dr. J.S. Pemberton • Contained extracts of Coca leaves and Kola nuts • Business sold in 1888 to business men • Candler acquired competitors and promoted Coca-Cola → Rapid sales increase since 1895 • In 1894 J.A. Biedenharn invented selling the prepared drink in bottles 2. Company Background (continued)• In 1919 a group of investors bought Coca Cola for around $25 million• Robert Woodruff turned the company into what it is now:• One of the worlds most recognized brands and a MNE with huge profits• 1993, Coca Cola entered India through a strategic alliance with Parle Exports• By now, it offers a portfolio of world class quality beverages, extending through over 400 brands 3. SWOT Analysis Strenghts• Strong brand-name• Global distribution system• High-profile global presence• Low cost of operation• Broad-based bottling strategy• High market share 4. SWOT Analysis Strenghts Weaknesses• Strong brand-name • Carbonates market is in decline• Global distribution system • Existing distribution system is less efficient for non-carbonates• High-profile global presence • Health care issues• Low cost of operation• Broad-based bottling strategy• High market share 5. SWOT Analysis Strenghts Weaknesses• Strong brand-name • Carbonates market is in decline• Global distribution system • Existing distribution system is less efficient for non-carbonates• High-profile global presence • Health care issues• Low cost of operation• Broad-based bottling strategy• High market shareOpportunities• Expansion• Use distribution strengths• Large domestic market (India)• Increasing average income in India 6. SWOT Analysis Strenghts Weaknesses• Strong brand-name • Carbonates market is in decline• Global distribution system • Existing distribution system is less efficient for non-carbonates• High-profile global presence • Health care issues• Low cost of operation• Broad-based bottling strategy• High market share ThreatsOpportunities • Competition from health drinks• Expansion • Competition from Pepsi• Use distribution strengths • Boycott in the Middle-East• Large domestic market (India) • Government regulations on Increasing average income in India production (license)• 7. Coca-Cola India CSR Initiatives Focus on Environment Responsibility 8. WaterMethods• Watershed Protection Community Watershed Partnership (CWP) (2005)• Rainwater Harvesting Projects Kaladera plant in Rajasthan (2006)• Educating Jal Tarang (a part of World Water Day) (2007) “Think Green, Go Green” Campaign (2007) Film (2007) 9. Water (continued)Achievements1. Reduced water consumption by 35% between 1999 to 20061. Reached zero water balance (2009)1. Returned all water in manufacturing processes (2010)2. Improved the livelihoods of Bottom of the Pyramid populations (BOP) (poor farmers) 10. WaterGoal: Reduce the emission of GHGs (especially HFCs and CO2) Methods 1. eKOfreshment Cooler Program (2000) 1. Converted old equipment to HFC-free fridges (2006) 2. Installed over 8500 units of HFC-free equipment (2007) 3. esKO Project (2007) 4. Enhanced energy efficiency 5. Developed Energy Management System (EMS) (2006) 11. Energy New Coke: Isdell wants to reduce Coca-Colas carbon footprint. - E. Neville Isdell, CEO 12. Energy (continued)Achievements 1. GHGs emission reduces by 75% (2006) 2. Reduced energy consumption by 640 million kilowatt-hours, which equals to 3 million metric tons 3. Increased the energy efficiency of equipment by 40 to 50% 13. FuelCoca-Cola had local operations for production, bottling, and delivery in each country of operation. Take Taiwan for example: SWIRE Coca-Cola Taiwan LTD. and its factories are in No.46, Singbang RD., Taoyuan County. 14. Packaging + Recycling • Focus on 3R (Reduction, Recovery, Reuse) • PET Recycling Project in Mumbai (2005) • “Abhiyan – The Movement”, a film on PET...
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